THE CONSTRUCTION SECTOR IS GEARING UP
Finweek English|23 July 2021
After a decade of tough operating environments, SA is left with only a handful of listed builders to tackle the government’s infrastructure rollout.
Brendan Peacock
THE CONSTRUCTION SECTOR IS GEARING UP

Steps toward economic reform, greater accountability for public sector officials and intent to get the economy on track again appear to have gathered momentum in recent weeks. One of the beneficiaries potentially sitting in the sweet spot of all three factors is the construction industry, which has endured a torrid decade.

After the 2010 Fifa World Cup stadium and infrastructure projects, order books in South Africa began to shrink and an oversupplied construction sector was quickly pushed to find alternative options to fill existing capacity. As the decade rolled on, a combination of the downward part of the commodity cycle, a lack of African infrastructure spend, stalled Middle East projects and cut-throat competition for contracts pushed construction firms to the brink.

Some, like Group Five and Basil Read, ultimately capitulated and entered business rescue in the face of project contract fines and an industry-wide liquidity crunch. Listed sector representatives in which to invest dwindled to a few.

2021, by contrast, has offered glimmers of hope as roads agency Sanral begins opening the taps on road construction spend, mines move to re-engage in postponed maintenance work, and the government announced an unexpected increase in the nonlicensed private electricity generation cap to 100MW.

هذه القصة مأخوذة من طبعة 23 July 2021 من Finweek English.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة 23 July 2021 من Finweek English.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من FINWEEK ENGLISH مشاهدة الكل
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 mins  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 mins  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 mins  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 mins  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 mins  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 mins  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 mins  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 mins  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 mins  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 mins  |
5 November 2021